Remaining Adco share also in Chinese hands

Abu Dhabi National Oil Company on Monday awarded the remaining 4% share in the emirate’s onshore concession area, operated by Abu Dhabi Company for Onshore Petroleum Operations (Adco).

Privately held Chinese conglomerate CEFC China Energy will pay USD 888 million for the stake, local media reported on Monday. The award comes a mere day after the news of China National Petroleum Corporation (CNPC) taking an 8% interest in the concession.

Commenting on the latest agreement, ADNOC Group Chief Executive Officer Sultan Ahmed Al Jaber said, “CEFC will complement the technical strengths of our existing partners and bring a new dynamic with their financial, commercial and investment experience.”

“By building an energy corridor, linking China, the Middle East and Europe, we can connect the Chinese market with the upstream resources of Abu Dhabi and the terminals in Europe,” CEFC Chairman Ye Jianming was quoted as saying.

ADNOC has a 60% stake in Adco, followed by BP and Total with 10% each. CNPC joined with 8% while CEFC will acquire 4%. The remainder is held by Inpex of Japan (5%) and South Korea’s GS Energy (3%).